09.09.2004
Nevada Trading Symbol - CNQ: SAGE
TORONTO, Sept. 9 /CNW/ - Sahelian Goldfields Inc. (Sahelian) has executed an option agreement with Atna Resources Ltd. and Atna Resources Inc. (Atna) to acquire up to a 70% undivided interest in the Triple Junction and Dixie Fork claims in the Rain District at the south end of the Carlin Trend in Elko County, Nevada. Triple Junction comprises 36 lode claims for 708 acres and Dixie Fork comprises 31 lode claims for 634 acres. Nigel Lees, Sahelian's C.E.O., commented that "the Carlin Trend has produced over 50 million ounces of gold from estimated reserves of over 100 million ounces. The Rain District, the southern extension of the Carlin Trend, is estimated to host five to six million ounces of gold to date and is considered under-explored." A.C.A. Howe International Limited has been engaged to prepare a technical report on the properties and oversee a work program that will be comprised primarily of drilling.
On completion by Sahelian of 15,000 feet of drilling by November 30, 2006, Sahelian can elect to either immediately form a joint venture with Sahelian holding a 55% interest and Atna a 45% interest, or elect to fund and carry out sufficient work to complete a bankable feasibility study to earn a 70% interest. The properties are subject to a royalty of 3% which can be purchased for US $1.0 million per percentage point. Sahelian has the right to terminate the agreement at any time without penalty. The proposed drilling program will be designed to test the potential gold mineralization at the contact between the overlying Webb formation finegrained clastic rocks and the Devil's Gate limestone in the Carlin Trend where the vast majority of the gold mineralization has been discovered.
The properties are located in the Pinon Range on the Emigrant fault, a south trending, graben bounding structure which hosts Newmont's Rain, Tess and Saddle, as well as their Emigrant Spring deposit cluster. The graben also hosts deposits at Trout Creek, Dark Star, Pony Creek, Dixie Creek, and others. "We have spent several months reviewing property acquisitions and have decided to focus on Nevada which produces over 85% of the annual U.S. gold production", Nigel Lees stated. The Company is actively negotiating to acquire interests in several exploration properties primarily in the Carlin and Midas Districts of Nevada. Sahelian plans to build a mining company through the exploration and development of its existing properties and acquisition of additional gold and silver properties in the Americas. The Company has eight exploration properties in Ontario and Quebec, including the Kerrs property on which it is currently carrying out a geochemical survey with the objective of identifying drill targets.
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This release was prepared by management of the Company who takes full responsibility for its contents. The Canadian Trading and Quotation System Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production. The Company disclaims any obligation to update forward-looking statements.
For further information: SAHELIAN GOLDFIELDS INC., 1 Richmond Street West, Suite 701, Toronto, Ontario, M5H 3W4, Tel: (416) 204-3170, Fax: (416) 260-2243/ (SAGE.) CO: Sahelian Goldfields Inc. CNW 09:35e 09-SEP-04